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Corporate Identity Fraud Prevention
Many ecommerce operators will already be aware of the damage that can be caused to their business as a result of identity fraud, resulting in account takeover and chargebacks.
However businesses should also be aware that they can be at risk from corporate identity fraud. According to the Home Office Identity Fraud Steering Committee corporate identity fraud occurs 'when a false corporate identity or another company's identity details are used to support unlawful activity'.
This type of business fraud works in a similar way to personal id theft, where fraudsters are able to take a company's identity and use it to apply for false credit, hijack the company bank account or purchase goods and other assets. As well as financial loss, business fraud can create loss of goodwill from customers and suppliers as well as damaging brands and reputation.
In an attempt to prevent business fraud increasing, the Fraud Advisory Panel has produced a fact sheet which explains how corporate identity theft can happen, why it happens, and most importantly, lists some simple steps organisations can follow to ensure they are not vulnerable to business fraud. The fact sheet also gives some strong advice for those who have already fallen victim to the fraud, and lists some other valuable resources for companies in the fight against fraud.
A copy of the factsheet is available for download here.
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